Once the Committee of Creditors (CoC) approves a resolution plan and issues a Letter of Intent (LoI), the successful resolution applicant (SRA) cannot reopen negotiations or withdraw from the plan by claiming that the LoI was conditional, the Supreme Court has held.
Stressing that such attempts would undermine the Insolvency and Bankruptcy Code‘s (IBC) time-bound resolution framework, Court said the approved plan becomes binding and irrevocable between the CoC and the SRA.
A Bench of Justices K V Vishwanathan and Vipul M Pancholi said any attempt to describe the LoI as “conditional” in order to back out of the plan is impermissible and contrary to the framework of the IBC.
Court was hearing an appeal filed by Sanjay Dave against the…